Long or short term mortgage

Charlie George

Looking to buy an apartment for around 90k,i think ill make a good few bob if i sell after say 5 years,what is my best mortgage to get if i sell after 5 years at around 5.5% interest,is it better to go for a 10 year mortgage or for a 25-30 year mortgage,bottom line,where will i make more money if prices rise at around 10% a year.

quadrifoglio verde

Charlie George wrote: »

Looking to buy an apartment for around 90k,i think ill make a good few bob if i sell after say 5 years,what is my best mortgage to get if i sell after 5 years at around 5.5% interest,is it better to go for a 10 year mortgage or for a 25-30 year mortgage,bottom line,where will i make more money if prices rise at around 10% a year.

Aside from the whole risk if the price doesn't rise (please don't say this time it's different...there has never been an asset that I can think off that hasn't seen it's price fall significantly, be it shares, property or commodities) you're best going for the longest term possible. You can get a 35 year mortgage and pay back at the 20 year rate if you run into trouble, you can revert to the 35 year rate, it's kind of difficult to get get a 20 year mortgage and pay back at the 35 year rate

dubrov

It all depends if you think you can get a better return than 5.5% elsewhere.

10% a year is a very optimistic projection for price rises by the way.

D3PO

lets party like its 2006 people.

Eldarion

The Canny McSavvies are back in force!

Please, please, please do some due diligence and proper research before you go down this road. 2008 was only 6 years ago.